Home Prices in Central Kentucky (Lexington, Louisville: for sale, real estate, condo)

[OldClothesandSuch]

My husband and I have been looking to buy a home with some land in Kentucky for the last year (we're in NH). We've noticed the market dip a bit but now that Spring is approaching, its getting insane. a 3br/2ba 2000sq ft home (with about 100K worth of updates needed) on 19 acres in Crestwood for 650K. Then a similar size/price home in Lawrenceburg for 450K. Pardon me, but if I wanted Yankee prices, I'd stay in New England.

I did a bit of homework about the areas in which we're looking to buy - the average household incomes are about 2x less than ours (average household income in Oldham Co is 84K. Who's buying these homes? Out of staters, too?

What's going on with the real estate in Kentucky?!

[Oldhag1]

Prices for land in Kentucky are generally cheaper than you experience in the North, but there are exceptions. Large acerage in what is considered Kentucky's Golden Triangle, which includes much of Central Kentucky, definitely falls under the exception. The nearer you get to one of the points (Lexington, Louisville, Covington/Cincinnati) the more expensive it becomes. While the average income these adjacent counties have appears lower than you think should be able to afford the property, there are pockets of individuals who make a rather hefty amount over that average - those are the people driving the prices you see. If no one told you, when discussing homes on large tracts of land like you are describing, the land is far more impactful on the selling price than the state of the home itself.

[CraigCreek]

Checking your previous posts, I was glad to see that you have visited central Kentucky. It's one of the prettiest parts of Kentucky, but it is also one of the costliest areas.

So - if you expand your search area a bit, prices should drop. Lawrenceburg is increasingly popular due to its proximity to both Lexington and Frankfort, and it serves as a bedroom community for both cities, thus pushing up prices. Ditto Prospect, a wealthy Louisville bedroom community.

Are you working with a realtor?

One other thing - finding acreage can be tricky in the Bluegrass. As I've noted many times on C-D, undeveloped land in Fayette County cannot be divided into parcels less than forty acres, to help protect our fragile and endangered Bluegrass Region.

Everybody loves the Bluegrass and wants to move here, it seems, and lots of those would-be new residents want spanking new houses built to their specifications on ten or fifteen acre lots in the pastoral Bluegrass - reminding me of Sendak's Wild Things' threat to Max: "We'll eat you up, we love you so!"

To protect and preserve the Bluegrass and keep its famous thoroughbred horse farms from being devoured, it's necessary to curb inappropriate development and to encourage infill.

Now, you CAN find parcels of 15-20 acres nearby, outside of Fayette County (which includes Lexington), and older properties are grandfathered in. But these regulations do impact land costs.

In your place, I'd look for a small farm north of Georgetown, in the rolling wooded hills, or check out western Woodford County or eastern Anderson or Garrard County near the Kentucky River. I'd look near Wilmore. I'd check out Richmond and points south, keeping close to I-75. I'd look at Winchester and Mt. Sterling, again keeping close to the Interstate (64).

If I wanted land, I'd avoid Versailles and Paris - too costly. If I could settle for a nice but not-new house on a good-sized city lot, I'd check those towns, too.

I'd also look into working with a realtor who is familiar with this whole area, especially since you currently live far away.

Good luck finding what you seem.

[PONYPULR]

We moved to Bourbon County on to 20 acres and used a great RE agent! If you'd like her info PM me! She is extremely educated about all the different types of properties the area has to offer!

[OldClothesandSuch]

Thanks for the recommendations and info -
Im just still stumped as to why the housing prices are near what they are here in the northeast - I live 45min from Boston and can get a nicer home on about the same amount of land that they're selling in KY. It makes you wonder - if KY has such a big problem with poverty/jobs - who's affording these homes? And Im not just talking about the ones in the areas closer to Louisville/Lexington - homes say in Kings Mountain, Stanford, and down that way are insanely priced.
Where are these people working?!?

[Oldhag1]

I just looked it up. There are three properties for sale in King’s Mountain: a 4700 sq ft home built in 2004 on 40 acres of prime land located less than 10 minutes from the city for $347,000; 154 acres of farmable land for $220,000 that can be built on or developed; and a 1,288 sq ft home built in 1980 on 1.6 acres for $99,900. Considering you can barely buy a one or two bedroom condo around here for $350,000, I am unsure how you think these are outrageous prices. The first property would easily cost in the millions up here. The 1200 sq ft house, even if it was stuck on just .2 acres, around here would fetch just as much as they are asking for the most expensive one. How cheap do you think they should be?

[CraigCreek]

Originally Posted by OldClothesandSuch

Thanks for the recommendations and info -
Im just still stumped as to why the housing prices are near what they are here in the northeast - I live 45min from Boston and can get a nicer home on about the same amount of land that they're selling in KY. It makes you wonder - if KY has such a big problem with poverty/jobs - who's affording these homes? And Im not just talking about the ones in the areas closer to Louisville/Lexington - homes say in Kings Mountain, Stanford, and down that way are insanely priced.
Where are these people working?!?

As previously noted, not all of Kentucky is poverty-stricken. Lexington, Louisville, and Northern Kentucky are comfortably well-off areas with some extremely wealthy folks around as well - take a look at the famous thoroughbred horse farms of the Bluegrass Region surrounding Lexington.

As also pointed out previously, land prices are what drives rural real estate. The properties you cited are not just houses - the two most costly include substantial acreage. I did not check to see if these are developed farms with barns, roads, fences (those miles of board fences are also extremely costly), etc., but that could be a big factor. $99,000 is very reasonable for a house, and the other two farms are also very moderately priced, considering their size.

New England farms are different from farms in Central Kentucky - our soil is richer and our growing season is longer, due to more moderate weather. I'd guess our farms are more productive as a result, and that's not even considering the horse farms.

It's really a case of apples and oranges - I am not sure you can really compare the two areas..

[OldClothesandSuch]

I must have missed the pinned post in this forum, let me answers some of the questions - so it might help those with advice to give:

What region or city, if known, are you considering?

The triangle from Louisville to Lexington to Harrordsburg to Louisville. Does that make sense?

Have you been here yet?

Yes, many times.

When are you moving?

We've been visiting KY for the last year trying to scope out the areas we like the most - we've been banking on this spring.

Where are you coming from?

New Hampshire

Why are you moving?

Despite the no income or sales tax, NH has unbelievably high property taxes, a very high cost of living and decent paying jobs are few and far between.

Where will you be working (location, not specific company)?

Husband is a boilermaker/welder and can work in many places in the area I specified above. Im self employed and can work from home.

Are you looking for a suburban, rural, city, or urban area?

Rural

Will you buy or rent?

Buy

If buying, are you looking for a house or a condo? How much can you spend?

House. Up to 350K

Are you looking for acreage?

Yes.

Are you married or single? Do you have children?

Married, children are adults.

Do you have pets?

Cats

Do you want or need a yard?

Yes

Do you prefer bustling activity or calm and quiet?

Calm/quiet

What do you want to be closest to?

Work *****
Shopping **
Basic services (supermarket, drugstore, etc.) ****
Nightlife *

[Peter1948]

Originally Posted by OldClothesandSuch

I must have missed the pinned post in this forum, let me answers some of the questions - so it might help those with advice to give:

What region or city, if known, are you considering?

The triangle from Louisville to Lexington to Harrordsburg to Louisville. Does that make sense?

Have you been here yet?

Yes, many times.

When are you moving?

We've been visiting KY for the last year trying to scope out the areas we like the most - we've been banking on this spring.

Where are you coming from?

New Hampshire

Why are you moving?

Despite the no income or sales tax, NH has unbelievably high property taxes, a very high cost of living and decent paying jobs are few and far between.

Where will you be working (location, not specific company)?

Husband is a boilermaker/welder and can work in many places in the area I specified above. Im self employed and can work from home.

Are you looking for a suburban, rural, city, or urban area?

Rural

Will you buy or rent?

Buy

If buying, are you looking for a house or a condo? How much can you spend?

House. Up to 350K

Are you looking for acreage?

Yes.

Are you married or single? Do you have children?

Married, children are adults.

Do you have pets?

Cats

Do you want or need a yard?

Yes

Do you prefer bustling activity or calm and quiet?

Calm/quiet

What do you want to be closest to?

Work *****
Shopping **
Basic services (supermarket, drugstore, etc.) ****
Nightlife *

Shelby County or Oldham County. Still rural but exurban. Shelby County has the best outlet mall in the state and best interstate access to get into Louisville or Lexington. Oldham county has some of the best home resale value for when you need to cash out and retire, and sell your land. Louisville has the most good hospitals nearby and is overall a superior city with regards to amenities to Lexington. I am not sure of your age but being too far in the middle of nowhere in retirement is a HUGE danger to your health if you need to call 911. The hospitals in Shelby and Oldham County are excellent exurban hospitals capable of stabilizing anything in their ER.

If you like Lexington and Harrdosburg too, then Shelbyville or Simpsonville would be a nice compromise, but of course away from the town center where the land is plentiful and the horses run the beautiful rolling hills!

[marino760]

Originally Posted by Peter1948

Shelby County or Oldham County. Still rural but exurban. Shelby County has the best outlet mall in the state and best interstate access to get into Louisville or Lexington. Oldham county has some of the best home resale value for when you need to cash out and retire, and sell your land. Louisville has the most good hospitals nearby and is overall a superior city with regards to amenities to Lexington. I am not sure of your age but being too far in the middle of nowhere in retirement is a HUGE danger to your health if you need to call 911. The hospitals in Shelby and Oldham County are excellent exurban hospitals capable of stabilizing anything in their ER.

If you like Lexington and Harrdosburg too, then Shelbyville or Simpsonville would be a nice compromise, but of course away from the town center where the land is plentiful and the horses run the beautiful rolling hills!

I'm just curious and so I'm asking. If one likes Harrodsburg, why steer them to Shelbyville or Simpsonville? Harrodsburg has one of the best and most beautiful walkable downtowns in the state, has low crime rates and affordable beautiful homes and lots of amenities for a town it's size. What am I missing?